The following are selected $2025$ transactions of Tamarisk Corporation:

Sept. $1$ Purchased inventory from Ripken Company on account for $$104,000.$ Tamarisk records purchases gross and uses a periodic inventory system.

Oct. $1$ Issued a $$104,000,12-$month, $12\%$ note to Ripken in payment of account.

Oct. $1$ Borrowed $$104,000$ from the Shore Bank by signing a $12-$month, zero$-$interest$-$bearing $$124,000$ note.

$($a$)$

Your answer is correct.

Prepare journal entries for the selected transactions above. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date

Sept. $1$

Correct answer

enter an account title

Purchases

Correct answer

enter a debit amount

$104000$

Correct answer

enter a credit amount

Correct answer

enter an account title

Accounts Payable

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$104000$

Correct answer

choose a transaction date

Oct. $1$

Correct answer

enter an account title to record issue of note to ripken

Accounts Payable

Correct answer

enter a debit amount

$104000$

Correct answer

enter a credit amount

Correct answer

enter an account title to record issue of note to ripken

Notes Payable

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$104000$

Correct answer

$($To record issue of note to Ripken$)$

choose a transaction date

Oct. $1$

Correct answer

enter an account title to record borrowing from the shore bank

Cash

Correct answer

enter a debit amount

$104000$

Correct answer

enter a credit amount

Correct answer

enter an account title to record borrowing from the shore bank

Discount on Notes Payable

Correct answer

enter a debit amount

$20000$

Correct answer

enter a credit amount

Correct answer

enter an account title to record borrowing from the shore bank

Notes Payable

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$124000$

Correct answer

$($To record borrowing from the Shore Bank$)$

eTextbook and Media

List of Accounts

Attempts: $1$ of $2$ used

Using multiple attempts will impact your score.

$15\%$ score reduction after attempt $1$

$($b$)$

Your answer is partially correct.

Prepare adjusting entries at December $31.($Use straight$-$line amortization of the discount.$)($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31$

enter an account title to record interest on the note on December $31$

Interest Expense

Correct answer

enter a debit amount

$3120$

Correct answer

enter a credit amount

Correct answer

enter an account title to record interest on the note on December $31$

Interest Payable

Correct answer

enter a debit amount

Correct answer

enter a credit amount

$3120$

Correct answer

$($To record interest on the note$)$

Dec. $31$

enter an account title to amortize discount on the note on December $31$

Interest Expense

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

Incorrect answer

enter an account title to amortize discount on the note on December $31$

Discount on Notes Payable

Correct answer

enter a debit amount

enter a credit amount

$16880$

Incorrect answer

$($To amortize discount on the note$)$

eTextbook and MediaAssistance Used

List of Accounts

Attempts: $2$ of $2$ used

Using multiple attempts has impacted your score.

$15\%$ score reduction after attempt $1$

$($c$)$

Your answer is partially correct.

Compute the total net liability to be reported on the December $31$ balance sheet for:

$(1)$

The interest$-$bearing note.

$enter a dollar amount

$107120$

Correct answer

$(2)$

The zero$-$interest$-$bearing note. $($Use straight$-$line amortization.$)$

$enter a dollar amount